Anti-money Laundering

In simple terms, anti-money laundering refers to a set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.

Though anti-money laundering laws cover only a limited range of transactions and criminal behaviours’, their implications are far-reaching. As an example, AML regulations require that banks, and other financial institutions, that issue credit or allow customers to open deposit accounts follow rules to ensure they are not aiding in money-laundering.

How does anti money laundering law apply to online casinos and sportsbooks?

Online casinos and sportsbooks operators take deposits for and process withdrawals of customer funds and are therefore required by law to monitor customers’ transactions and report on anything suspicious.

Criminals often try to “launder” the money they obtain illegally through acts such as drug trafficking so that it can’t easily be traced back to them. One of the most common techniques is to run the money through a legitimate cash-based business.

It’s up to the operators of casinos and sportsbooks to monitor customers’ deposits and other transactions to ensure that they aren’t part of a money-laundering scheme.

How does anti money laundering law apply to you as customer?

Part of the verification process and source of wealth checks, which online casinos and sportsbooks carry out, is for the anti-money laundering as required by law.

They are required by anti-money laundering regulations and gambling regulations to make checks to verify every player’s identity and, where necessary, the source of any funds placed on deposit by the player.

Almost every operator in a regulated market has streamlined these processes to have a minimal impact on the experience that players have when registering with them.

These requirements impact everyone, even those of us who are simply looking for a quiet night of entertainment playing slots or watching and betting on our favourite sports are now frequently confronted by ominous sounding terms and processes such as AML, KYC and SOW which are all part of this overarching legislation.

In the following pages we will explain what each of these topics means and what you can expect as a player.